You are here: Home » Economy & Policy » News
Business Standard

Odisha aims to get Rs 2,000 crore from lease renewals

Signs supplementary lease deeds for 10 mines

BS Reporter  |  Bhubaneswar 

The Odisha government has inked supplementary lease deeds to facilitate reopening of 10 iron and manganese ore mines in Sundargarh district.

The lease deeds were executed for five mines owned by Rungta Group including Rungta Mines, Fee-grade & Company Ltd and the rest owned by Odisha Manganese & Minerals Ltd (OMM) and Aryan Mining & Trading Corporation Ltd (AMTC).

In toto, the state government has issued orders to extend the lease validity of 29 mines- 21 captive and the balance non-captive mines. Out of these 29 leases, 25 are iron and manganese ore mines which upon resuming operations can augment iron ore production by over 40 million tonne.

"Supplementary lease deeds are expected to be signed with the remaining lessees in a day or two. The state government expects to garner around Rs 2,000 crore from these lessees by way of stamp duty and registration fees," said a government official.

The collection from six mines of Tata Steel alone is estimated at more than Rs 500 crore. These six leases whose validity have been extended are Khandabandh, Manmora, Tiringa Pahad, Katamati, Joda West, Joda East and Bamebari.

The mines held KJS Ahluwalia, Kaypee Enterprises, Kalinga Mining Corporation, KN Ram & Company, Vivek Lall and Bargarh Cements would also sign the supplementary lease deeds.

The state government had allowed three months' time (from the date of issue of orders) to lessees to sign supplementary lease deeds.

Other conditions to operate mines include payment of NPV (net present value) dues and complying with the Supreme Court order to be pronounced in the final disposal of the cases relating to these mines as well as pending orders on recommendations of the MB Shah Commission of enquiry and the central empowered committee (CEC) on illegal mining in the state.

An interim order of the Supreme Court in May 2014 had triggered shutdown of 26 iron and manganese ore mines in the state. The top court held that such leases cannot operate under the provisions of 'deemed extension' under Mineral Concession Rules (MCR), 1960 unless the government passed express orders for their operations. Due to the temporary closure of these mines, iron ore production in Odisha shrank 39 per cent to 47.35 million tonne in 2014-15 from 77.84 million tonne in the year-ago fiscal.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, May 05 2015. 20:19 IST
RECOMMENDED FOR YOU
.